Why Bitcoin, Dogecoin, and Ethereum Just Crashed

Motley Fool2021-07-09

What happened

It's Thursday, and cryptocurrencies are crashing. As of 10 a.m. EDT, the prices of several of the biggest names in cryptocurrency are tumbling:

  • Bitcoin (CRYPTO:BTC) is down 4%
  • Dogecoin (CRYPTO:DOGE) is down 6.1%
  • Ethereum (CRYPTO:ETH) is down 7.4%

Image source: Getty Images.

So what

Why is that? Well, the most obvious answer appears to be government regulation.

In the United Kingdom for example, regulators at the Financial Conduct Authority have ordered Binance, the world's largest crypto exchange by trading volume, to post a notice on its website advising that "it is not authorized to operate in the U.K.," reports CNBC today. The news agency further notes that "customers were temporarily unable to make card withdrawals due to an issue with the U.K.'s Faster Payments system," which one would expect to make traders nervous about holding their cryptocurrency. Furthermore, local bank Barclays "has blocked customers from sending payments to the crypto exchange."

Nor are U.K. regulators the only ones meddling in the cryptocurrency market. China's aversion to crypto is by now well known. And even in the United States, high profile Sen. Elizabeth Warren, who chairs the Senate's Subcommittee on Economic Policy, has commented that she wants to see "common-sense regulations" of cryptocurrency in the U.S. Worrying that the erratic swings in the prices of cryptocurrencies such as Bitcoin, Dogecoin, and Ethereum will "end badly" for traders, she has ordered the Securities and Exchange Commission to "use its full authority" to regulate the market, and wants to hear how they plan to do it by July 28.

Now what

Long story short, while tightened regulation of cryptocurrency in the U.S. hasn't happened yet, there's now a firm date on the horizon -- less than three weeks from now -- when new regulations may be proposed.

Knowing that regulation is coming, but not yet knowing just what form it will take, has to make cryptocurrency traders at least a little bit nervous, and that nervousness is showing up in the prices of Bitcoin, Dogecoin, and Ethereum today.

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精彩评论

  • Greenbull18
    2021-07-09
    Greenbull18
    [Cry] 
  • 2020TS
    2021-07-09
    2020TS
    Crptos are in winter.
    • Kikiooi
      Good opportunity foe new comers
  • Tamashii
    2021-07-09
    Tamashii
    China investor will crush bitcoin even more!
  • theloy
    2021-07-09
    theloy
    The end of story? [捂嘴] [捂嘴] 
  • 732bc2e8
    2021-07-09
    732bc2e8
    More FUDs. [捂脸] 
    • M3Mike
      More Bad News => More FUD
  • EsmeT
    2021-07-09
    EsmeT
    Like pls! Thanks! 
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